SumUp raises €285M to expand payment products for small businesses

Today fintech company SumUp announced that it has closed a €285 million funding round led by Sixth Street Growth.

SumUp provides affordable and easy-to-use payment products and financial services to more than four million small businesses worldwide. 

Recently, SumUp expanded its product and service offering for small merchants: with SumUp One there is now a multi-product subscription that bundles the most popular features at a fixed, reduced price; 

Partnering with VPC makes business financing possible in the UK, and Tap to Pay on iPhone is now available to customers in the UK, France and the Netherlands.

The new financing comes after a year of increasing momentum for SumUp, which has achieved positive earnings before interest, taxes, depreciation, and amortisation (EBITDA) since the fourth quarter of 2022 while reporting revenue growth of more than 30 percent year-over-year. 

The company has consistently increased its EBITDA margins, leveraged economies of scale and leveraged the dealer relationship platform it has built over the last 11 years.

Funding participants include Bain Capital Tech Opportunities, Fin Capital, and Liquidity Capital.

In 2022, the company raised €590 million at a valuation (at the time) of €8 billion. The current funding round brings the company's funding to over €2.28 billion.

Hermione McKee, CFO of SumUp shared: 

"Our mission is to create a world where everyone can build a successful business.

SumUp's consistent growth over the past eleven years is a direct result of the success of the traders we serve and would not be possible without the unwavering trust and support of the investor community.

We are pleased that Sixth Street is now part of this community. This funding gives us additional ability to pursue growth opportunities and accelerate product developments that support small businesses."

Nari Ansari, Managing Director at Sixth Street Growth added: 

"For more than a decade, SumUp has achieved sustained growth and boldly expanded into entirely new product categories and markets. 

This remarkable track record and culture of innovation, combined with SumUp's approach to growth and efficiency, fit well with Sixth Street Growth's investment strategy. 

The way people do business today is constantly changing, and SumUp is always alongside its merchants to give them exactly the tools to make it easier for them to get paid for what they love. We look forward to working with the SumUp team to support them in this next phase of growth."

Darren Abrahamson, Managing Director at Bain Capital Tech Opportunities, said: 

"SumUp continues to deliver on the promise of helping small businesses thrive. 

SumUp has impressed us as investors recently with its successful pursuit of profitability and growth. We are very optimistic about the future of SumUp and will continue to invest in the company." 

SumUp plans to expand its global footprint to continue providing small merchants with the tools and services to build, operate and scale their businesses.

Lead image: SumUp. Photo: Uncredited.